Implications of non payment

Implications of non-payment

Non payment occurs when the client skips settling the amount due on their credit card or when a DDA or DSR form is returned and it it has it consequences, though it is treated as a blanket matter, it varies from case to case as listed below.
  • No penalty or charge is made on an overdue payment on a free for life credit card for the first 60 days
  • If 60 days arrive/pass, an interest charge of 3% per annum is activated
  • Defaulting on settling the amount due on card for 3 consecutive months will trigger communication from the collections department
  • If no agreement is reached, a promissory letter is signed,and once it is defaulted,the collections department draws the security cheque
  • Skipping monthly emi payment on a personal loan will cause a DDA/DSR form to be returned
  • A returned DDR/DSR form, attracts a spot charge of AED100
  • Once 3 DDA's or DSR's are returned,collections department will draw the security cheque

Potential impact to users' credit score

Once a DDA, DSR , OR or returned charges are effected,they definitely have an impact on the credit score of the applicant restrains the applicant in question of the below listed issues:
  • The applicant will need to pay the charges and clear the outstanding bill, before the case is reported as a criminal case, having a returned DSR/DDR is a bad credit score and restricts applicants form procuring extra credit for 90 days
  • If the case is reported as a criminal case, the client in question will be blacklisted by the central bank of UAE and will not procure credit ,till the central bank finds him fit to start borrowing again
  • Future credit is limited as much as 50% for such a client, in the future

Time remedy

Having been caught offside on these issues does not mean that client will never procure credit again, it means they have to wait for at least 90 days for clearance, before they may approach again

Renewal policy

There is no automatic renewal on any loan or credit card application, once the tenure expires, a fresh application is made, and comes along with its fresh terms but clients who repaid well and created a good rapo through settling their liabilities, will obviously be awarded more options to personal loans at much more attractive interest rates and flexible repayment schedules.This means that the bank in Dubai, will go to its limit, since a level of trust has been established with the client in question.

Contact Us

If you have any questions, feel free to contact us

http://www.loansindubai.net/

Office 306

Cnr 3A Street & 6th street

Al Quz Area

Dubai

UAE

info@loansindubai.net